Gulfsands Claims Khurbet East Producing Avg of 3,420 bbl/d

Gulfsands Petroleum has
successfully completed the drilling, logging and testing of the
Khurbet East-3 (KHE-3) well, the second appraisal well on the Khurbet
East discovery within Block 26, Syria. The well flowed 26 degree API
oil on drill-stem test at an average, stabilized production rate of
3,420 barrels per day (bopd).

Gulfsands, the operator and 50% working interest owner in Block 26
has now completed operations on the KHE-3 well. The objectives of
this second appraisal well were to acquire reservoir and structural
information on the primary objective Massive Formation southeast of
the KHE-1 discovery well, and to undertake a production test of the
entire main reservoir section.

The top of the Massive Formation reservoir was encountered within 3
metres of the pre-drill prognosis and at a similar depth to the KHE-1
discovery well and the KHE-2 appraisal well. Third party
interpretation of the wireline logs obtained from the KHE-3 well
indicates a similar reservoir interval in the Massive Formation as
seen in the KHE-1 and KHE-2 wells with reservoir properties similar
to or slightly better than those encountered in the KHE-1 and KHE-2
wells. A definitive oil-water contact has still not been identified
within the main reservoir interval.

After completion of logging operations, the Company carried out a
drill-stem test over the entire Upper Massive reservoir interval. The
oil production rate continued to improve during the course of the
test reaching a maximum daily production rate of 3,560 bopd near the
end of the main flow test period. The average, stabilized production
rate was 3,420 bopd with 206,000 cubic feet of natural gas per day
through a ¾ inch choke. Preliminary analysis indicates that the oil
gravity is 26 degree API, which is consistent with the oil
encountered in KHE-1 and KHE-2.

The information obtained from the KHE-3 well has been provided to
independent engineering consultants, RPS Group plc, for assessment
and inclusion in a report on commercial development of the Khurbet
East Field. The Company expects to submit this report to the Syrian
Petroleum Company and the Syrian Government for approval in mid
January 2008. RPS Group plc has also been requested to provide a
report on the reserves and resource estimate for the Khurbet East
Field and this is anticipated to be delivered during the second half
of January 2008.

The Company has also completed the 3D seismic acquisition program
over the Khurbet East Field. The Company is now proceeding with
seismic processing and the interpretation of these data will be used
to assist in the selection of additional development well locations
in the Khurbet East Field during 2008 and 2009 as well as any
'near-field' exploration locations immediately adjacent to the Field.

The Company has also completed approximately 60% of the acquisition
of a 240 square kilometer 'exploration' 3D seismic program located
to the south of Khurbet East. These data are expected to assist in
maturing exploration leads within the Khurbet East 'play fairway'
into 'drill ready' prospects. This seismic program is expected to
be completed by the end of January 2008 with seismic processing and
interpretation to follow.